Finance Matters

• 17Feb

  When the penny drops

  Business No Comments

  From The BBC:

  Consumers in the UK should expect a revolution in the way they pay for things in the near future, according to payments association Apacs.
  The cheque, which is 350 years old on 16 February, is said to be in irreversible decline as innovation points towards a cashless society.
  Banks will increasingly battle for a consumer to use one card exclusively.
  But as consumers prepare to pay and access accounts using their mobiles, retailers are worried costs will rise.
  Pay date
  By 2015, the number of payments made by cash in the UK will be overtaken for the first time by other ways of paying, according to Apacs.

  At the end of this year, three million Barclays customers will be able to press their debit card to a sensor in more than 8,000 UK shops to register a payment.
  Meanwhile, the UK could mirror technology already used in East Asia where the chip now found in a plastic card is placed in an everyday item such as a mobile phone or a watch. This is then pushed against a sensor in a shop…

  Click to read the full article »
• 17Feb

  Premium Bonds: £30m unclaimed

  Money No Comments

  From The BBC:

  Premium Bonds holders are being urged to check whether they are among the 550,000 people who have left a record £30m of prizes unclaimed.
  National Savings and Investments (NS&I) said unclaimed wins ranged from £25 to one prize of £100,000.
  Winners are sent cheques to the address held on file by NS&I, and prizes often go unclaimed because people move house and do not update their details.
  People can check if they have won via the NS&I website or by writing to them.
  ‘Check with us’
  Some are unaware they even own Premium Bonds, having had them bought for them as a child.
  And executors of people’s estates are often unaware that the person who died held Premium Bonds, NS&I said.
  “We urge anyone who believes they could have unclaimed prizes to check with us,” said Sally Swait, Premium Bond manager at NS&I.
  The highest unclaimed prize of £100,000 belonged to a woman who had previously lived in outer London, and who held just £25 worth of Premium Bonds.
  Of the two people who have…

  Click to read the full article »
• 16Feb

  No 10 rules out Lloyds bank move

  Money No Comments

  From The BBC:

  Gordon Brown’s government does not plan to nationalise banking group Lloyds, his spokesman has said.
  Lloyds Banking Group shares fell 20% in morning trade in reaction to Friday’s announcement of massive losses at HBOS, and closed down 8% at 56.40 pence.
  The early slump raised concerns Lloyds, which is 43%-government owned, could need more funds or be nationalised.
  But a spokesman for Mr Brown said the government was giving “no active consideration to nationalising Lloyds”.
  Wider stability
  And the spokesman added that Mr Brown had no regrets about allowing the merger between Lloyds TSB and HBOS to go ahead, his spokesman has said.
  He added that the prime minister still believed the merger was in the interests of the wider stability of the financial system.
  Lloyds shares had already fallen by 32% on Friday after it announced it expected losses of nearly £11bn for 2008 at HBOS.
  And after volatile Monday trading, shares fell further into negative territory after the ratings agency…

  Click to read the full article »
• 15Feb

  Record-keeping final guidance published

  Pensions No Comments

  From The Pensions Regulator:

  The Pensions Regulator has today published

  The guidance helps those responsible for record-keeping and administration to put in place good practices for measuring the presence of member data. It also gives advice on assessing the risks of incomplete or inaccurate data.

  Following the consultation the regulator has made some changes to the guidance.

  The final guidance now uses ‘common’ and ‘conditional’ data, as these more closely reflect the differences in scheme types.

  Common data is applicable to all schemes, including details such as name, address, date of birth, NI number, dates of start of pensionable service and expected retirement. Conditional data is required to effectively administer a pension scheme. Specific items will vary from scheme to scheme dependent upon scheme design and structure, but could include salary and details of investment…

  Click to read the full article »
• 15Feb

  Third purple book most comprehensive to date

  Pensions No Comments

  From The Pensions Regulator:

  The most comprehensive picture to date of the risks faced by the UK’s defined benefit pension schemes was jointly published today (Monday) by the Pension Protection Fund (PPF) and the Pensions Regulator (the regulator).

  The data and analysis contained in

  This dataset is larger than last year and reflects the better information supplied by schemes to the regulator through its improved scheme return processes.

  New chapters have been added this year focusing on PPF compensation payments and risk reduction. Some existing chapters have been expanded to include more comprehensive information and detail than ever before, eg on scheme asset allocation.

  PPF Chief Executive, Partha Dasgupta, said: “We now have three years worth of invaluable data which allows us to compare and monitor the risks that eligible defined benefit schemes face and the way tha…

  Click to read the full article »
• 15Feb

  Employers: remember duty to consult members on scheme changes

  Pensions No Comments

  From The Pensions Regulator:

  The Government has announced that it is consulting on proposals for the Pensions Regulator to issue fines over breach of consultation requirements. The regulator would therefore like to remind employers of their

  Pensions Regulator strategic development director Bill Galvin said: “Members have a right to voice their opinions on changes to their pension scheme. The consultation process need not be onerous and we expect employers to carry this out, where practical, and to listen to member responses before any final decisions are made. This will enable members affected to understand the implications for them, and why the proposal has been made.”

  Employers should allow an appropriate time for members to respond, taking into account member views prior to any changes being made. There should be no coercion or inducement – employees should not be made to feel that the proposals will be implemented…

  Click to read the full article »
• 15Feb

  Material detriment code of practice published for consultation

  Pensions No Comments

  From The Pensions Regulator:

  The Pensions Regulator has today published its draft

  The material detriment test, introduced by the Pensions Act 2008, is a new test for contribution notices, based on whether a sponsor’s actions or failures have a materially detrimental effect on the likelihood of members receiving their benefits. 

  The code, which targets the new material detriment test, sets out the circumstances in which the regulator expects to use this new power. It aims to provide greater certainty on its use to help trustees, employers and other related parties to understand the practical application of the new ground for contribution notices.

  The new material detriment test will come into effect on commencement of the code of practice. The code will only relate to the new ground for contribution notices and has no impact on the other grounds, powers, clearance or scheme funding, which will continue…

  Click to read the full article »
• 15Feb

  Recovery plans show positive trends in addressing pension deficits – but challenges ahead

  Pensions No Comments

  From The Pensions Regulator:

  Positive steps have been made to address pension deficits through the scheme funding regime, and clearance activity is on a downward trend, data published today by the Pensions Regulator shows.

  “Trustees should not over-react in the face of the downturn, but should ensure they are active and alert to potential changes in the health of the sponsor, and to the funding level of the scheme. In responding to short-term cash flow difficulties trustees should first consider back-end loading recovery plans. Where valuations show a much larger deficit, then as we said in our October statement, this may result in longer recovery plans being proposed.  We will of course keep our approach under review as the situation develops.”

  Economic factors affecting recovery plans received over the next year will be very different. During this time the regulator expects to see:…

  Click to read the full article »
• 15Feb

  Refreshed TKU code and guidance published for consultation

  Pensions No Comments

  From The Pensions Regulator:

  The Pensions Regulator has refreshed the trustee knowledge and understanding framework to ensure it remains relevant, and is today publishing a draft revised code of practice and scope guidance for consultation.

  The revised code of practice sets out practical guidance for trustees in relation to the TKU regime, while the scope guidance provides trustees with a checklist of the topic areas of which they need to have knowledge and understanding. Both documents support those seeking to meet trustee knowledge and understanding requirements, introduced by the Pensions Act 2004.

  The consultation follows a review of the existing code of practice and scope guidance, undertaken to ensure that the TKU framework remains relevant for trustees. Changes reflect:

  Regulated community learning manager Terry Clayworth said: “The refreshed code and scope guidance reflect change…

  Click to read the full article »
• 15Feb

  Instant cover with Post Office over 50s life insurance

  Life Insurance No Comments

  From UK Insurance Index:

  The Post Office over 50s life insurance policy is now available with instant cover over the counter at all UK Post Office branches without needing to wait for an application to be processed.
  The Over 50s Life Cover plan is guaranteed for all UK residents aged between 50 and 80 with no medical questions or checks required. Customers are able to choose how much cover they want with premiums starting from as little as £7 a month and can be an affordable way to provide your family with a cash sum to help with funeral expenses.
  Duncan Caesar-Gordon, Post Office head of protection, commented: “In a time of such uncertainty people need peace of mind more than ever, which is why we are now offering instant protection over the counter. Thinking about the future and how a family will cope should the unexpected happen is an extra worry but a simple plan can ease those worries of those concerned about passing on funeral costs and debts.”…

  Click to read the full article »

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